New West Partners
an investment limited partnership focused on Quality
Returns Since Inception
Areas of Focus
Quality
The primary focus of New West Partners is identifying opportunities to purchase companies displaying superior business characteristics at a discount to their intrinsic value.
Our approach to achieving this is centered on the idea that investments in public securities should be viewed no differently than a private market purchase of a business. That is, that stocks are not pieces of paper that bounce up and down in price but rather ownership shares of a company.
Corporate Actions
The second area of focus is corporate actions, or securities whose results are prompted by some management initiative or legal proceeding rather than the normal supply and demand forces of the market.
Corporate actions provide occasions where a timetable can reasonably be placed on unlocking or creating value. Events such as mergers, liquidations, distressed debt, reorganizations, etc. can provide for such opportunities.
Structure of Fees
Overview
The fee structure has been modeled after the original Buffett Partnership for two reasons.
First, it is simple. As we would prefer to allocate time towards investing rather than managing complex fee structures, it suits our goals.
Second, it is one of the best incentive alignment structures we’ve seen utilized in the capital management world. As it is not tied to a benchmark but rather a static hurdle, investors are only paying for throughput and not our back office.
We are big fans of incentive alignment.
Management Fee
None
Preferred Return
Six percent (6%) accrued (i.e. high water mark)
Performance Fee
Twenty-five percent (25%) above the preferred return.
New West Partners, LP is formed in accordance with the Limited Partnership Act of the State of Delaware and is available to accredited investors pursuant to SEC Rule 506(c) of Regulation D.
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